Buyers Market Helps Premium Home Sales Soar

Dated: 07/03/2017

Views: 12

Buyer's Market Helps Premium Home Sales Soar


Buyer's Market Helps Premium Home Sales Soar | MyKCM


We previously reported how a shortage of inventory in the starter and trade-up home markets is driving prices up and causing bidding wars, creating a true seller’s market. At the same time, in the premium home market, an over-abundance of inventory has started to see prices come down and put buyers in the driver’s seat, creating the beginning of a buyer’s market.

Last week, the National Association of Realtors released their Existing Home Sales Report which shed some additional light on the impact of inventory levels on sales in each price range.

The chart below shows the year-over-year difference in sales at each price range.

Buyer's Market Helps Premium Home Sales Soar | MyKCM

The under $100K range has shown declines in recent years due to the shortage of distressed homes available for sale (just 5% of sales this past month, compared to 35% in January 2012). Sales in the next two price ranges are no doubt being hindered by low inventory as buyers compete for the same home.

NAR’s Chief Economist, Lawrence Yun, explained:

"Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher."

The biggest surprise? This is the first time in years where the $1M and up price range had the highest jump in sales when compared to last year and to all other price ranges (29.1%)! The two price ranges right underneath the $1M range were a close second and third. As the price went up, so did the sales!

With additional inventory available in the higher price ranges, and the economy improving, many luxury buyers are finding it easier to find their dream homes. Yun commented,

“The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level.”

Bottom Line

If you are one of the many homeowners who is looking to sell your starter or trade up home and move up to a luxury home, now is the time!

Want to Advertise on this Site?

Latest Blog Posts

Almost New Townhouse Near Future Ashburn Metro

22634 Cambridgeport Square$549,999 Townhouse 4 Beds, 3 Baths, 2 Half Baths, Ashburn Open House Sun 01:00:00 PM - 04:00:00 PMOpen House! Sun 01:00:00 PM - 04:00:00 PM FIRST OPEN HOUSE!

Read More

Home Prices Have Appreciated

Home Prices Have Appreciated 6.9% in 2018 Between 1987 and 1999, which is often referred to as the ‘Pre-Bubble Period,’ home prices grew at an average of 3.6% according to the Home

Read More

NAR Reports Show Its A Great Time To Sell

NAR Reports Show It’s A Great Time to Sell! We all realize that the best time to sell anything is when the demand for that item is high and the supply of that item is limited. The last two

Read More

4 Reasons Why Fall Is A Great Time To Buy A Home

4 Reasons Why Fall Is A Great Time to Buy A Home! Here are four great reasons to consider buying a home today instead of waiting. 1. Prices Will Continue to Rise CoreLogic’s latest

Read More